The pensions dashboard will not be available to providers until 2023, four years after the UK government wanted it introduced to the sector.
The Pensions Dashboards Programme, the delivery group tasked with implementation, said on 28 October that schemes and providers will be compelled to connect to the system by law in 2023.
The primary issue is a lack of data that is ready to be entered on the dashboards, with the Pensions Dashboards Programme saying it did not expect there to be enough information that was dashboard-ready before 2023.
There is now a phase plan which will be carried out by the delivery group.
Letting down a generation of savers
Helen Morrissey, pension specialist at Royal London, said: “After already progressing at a snail’s pace for some time, it is hugely disappointing to see this project further delayed. Of course, such projects are complex but the potential that dashboards have to help people take control of their retirement planning is huge and must be grasped. Every delay risks letting down a generation of savers.”
Steve Webb, partner at LCP, said: “From the start of the dashboard project, ministers have set out unrealistic timetables for the completion of a pensions dashboard.
“This is a vast project, involving collating data on potentially hundreds of millions of pension entitlements and presenting the data in an accurate, secure and informative way. Although further delay is frustrating, it is better to have a realistic timetable and a plan to get there than simply vague aspirations.”
Jon Greer, head of retirement policy at Quilter, added: “As the delay continues it’s crucial that advisers help clients and their loved ones keep track of their various pensions and where appropriate consolidate.
“Consolidating a pension is vital, as there is a danger people have some pension plans that are in funds that are no longer suitable, or the multiple charges may be eating away at their turns, and vitally it’s also much easier to manage. There is a real opportunity to add value as an adviser in this space and it is one that should be overlooked.”
Pushback
A 2023 launch will be four years later than initially planned.
The pension dashboard project was first announced in the 2016 budget, with the UK government pledging to ensure the industry designed, funded and launched a dashboard by 2019.
But following delays to the legislation, such as the Pensions Bill being put on ice because of 2019’s general election, the industry has had a long wait for the dashboard to become consumer-facing.
Disppointing yet worthwhile
Kate Smith, head of pensions at Aegon, said: “Implementing pension dashboards is proving to be an extremely complex but worthwhile challenge, as shown by the latest update from Pensions Dashboards Programme.
“The timetable has been pushed out by four years. Although this is disappointing, we believe the delay is worthwhile using the extra time to get things right.”
Tom Selby, senior analyst at AJ Bell, added: “Rushing the introduction of half-baked pensions dashboards would have risked causing terminal damage to a project which has the potential to revolutionise retirement engagement in the UK.
“Allowing people to see all their retirement pots in one place is a colossal undertaking, particularly when you consider the hotchpotch of different schemes that exist.
“While most modern platforms are well positioned to do this, some older-style pensions and defined benefit (DB) schemes are still administered using antiquated technology systems and therefore face a bigger challenge in supplying data. Ensuring this data is shared in safe manner has to be the number one priority for a project like this.
“Furthermore, without legislation in place compelling schemes to supply data there is a danger important sections of people’s retirement saving history would simply not be captured. If this were the case, it would risk undermining the legitimacy of dashboards in the eyes of users whose expectations have been shaped by the likes of Monzo and Deliveroo.”
